13 banks commit $20B to small business lending

The four largest banks in the U.S. are among 13 financial institutions that have committed to increase their lending by $20 billion to small businesses over the next three years, reports the Washington Business Journal.

The banks are: Wells Fargo, Bank of America Corp., Citigroup Inc., JP Morgan Chase & Co., KeyBank, Regions Bank, Huntington Bank, M&T Bank, Citizens Financial Group, TD Bank, US Bank, PNC Bank, and SunTrust Bank, the article said.

Karen Mills, who heads the Small Business Administration, made the announcement while touring the Ohio-based Wrap-Tite packaging supply company that was recently given a $1.5 million SBA loan.

According to the Associated Press, the loan enabled the company to purchase a production facility five times larger than its old locations and expand its number of employees.

On Sept. 20, Vice President Joe Biden also visited the plant to underscore the significance of the 13 bank commitment. The move will buoy small business lending that dwindled from $700 billion in 2008 before the recession to $600 billion, Biden told the AP.

Reader Comments

Fri, Sep 23, 2011 Dave K

This "announcement" is pure bullshit! If the banks meant it, they'd just start lending... and the first to do it would steal customers lock, stock and barrel from the others, and make a fortune. I'll believe it when I see it, not when they push PR spin!

Thu, Sep 22, 2011 John Seattle

I own a profitable technology business employing about 40 people. About half our our business is to prime and subcontractors for military applications. We have enough working capital, so my main concern is not the availablity of short-term bank loans. My main concern is the uncertainty over commercial and military spending and the tax policies over the next year. Short term tax and spending stimulus is EXACTLY OPPOSITE to what small business needs. We need a reasonably stable business and tax environment in which we can develop our long-range expansion plans. Congress and the President need to get their act together and develop a roadmap on how we are going to get out of this fiscal and monetary crisis. Short-term carrots will not convince me to expand, and borrowing more to spend our way out of debt is not going to work.

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